prognosis

It should be a quarter point cut maximum. The pound must be protected. Already the value of exports is dropping. Imports are increasing in price. This stupid policy is just delaying the pain. to little to late agreed. But then teh MPC are always about ayear to late. 2005 was the opportunity to slow House price Inflation and similalrly oct/nov 2007 was the chance to cushion the recession. yes always to little to late.

sorry not quite sure the point you are making here? they are charging for their services and there has been a 98% decrease in the rates. edit add. Just read my original post . to explain the inference is that with no iron ore or coal shipped, no steel is being produced from which they make washing machines and cars.

I wonder if there is with this new 6 month delay a hidden agenda in that repossession preperations will not be started for 6 months. There's something very odd about this 6 month thing and the way it is being worded. General election in March then!

and then if those are dropping you can't afford the rent for the commercial property to house it.

It costs money to run a bank. There is absolutely no point in cutting interest rates to zero. The pound will tank and hefty service charges will have to be introduced to balance the books.

I have long pondered what the effects of the credit crunch would be to a manufacturing economy such as Germany as oppose to a service economy. Personally I feel it will be much harder hit than the UK.

Dec. 3 (Bloomberg) -- Mitsui O.S.K. Lines Ltd., Japan's most profitable shipping line, may lower its earnings forecast this fiscal year as daily charter rates for its largest coal and iron ore vessels have tumbled 98 percent to a record low. http://www.bloomberg.com/apps/news?pid=206...&refer=home So production of pretty much anything made of steel has stopped or is process of stopping. nobodies buying washing machines, cars, etc etc. and more worryingly no long term orders. On top of that commodity prices have already dropped more than in the great depression. Can you imagine a 98% drop in the price of goods you sell. !

sorry to bounce , as a newbie this was lost way down,. just thought it amusing!

regardless of the fact that I am a goldbug I think deflation is still more probable. even with the pump priming of the economy the replacement value so far is pitiful next to the global loss of wealth which has been lost and the consequent de-leveraging needed. We will be lucky to see inflation in the next 10 years unless of course severe shortages are manufactured in the short term . And there is only a couple of ways that will happen. Severe depression or world war. In the meantime we will continue to teeter on the precipice. I am a goldbug to protect my wealth against the lunatics running the asylum. God knows what they will do by this time next year.

hyperinflation comes about when there is an abundance of money but no goods that everyone wants to buy. we are still not there are we?

is this where all the black swans are? http://www.sequencehome.co.uk/detail.asp?id=L62100221 says it all really

I know some people who have taken huge losses in both commercial and residential German property and are still sitting on them ..... EMPTY I don't now how long that will last. However if inflation does hit GOLD is very good to be in. I can't understand your logic on that one. remember we may well get inflation with shrinking asset prices. gold you can then get in and out of quickly. Property you can't

The biggest issue for the Uk economy is when Brown/King or Darling speak is that the rest of world listens and marks down the currency. If we all spoke German we'd be fine! and as for meddleson he should shut the f*ck up

yes

A recent sudy by NOTUR - The Norwegian Metacenter for Computational Science suggests that the gulfstream will not be effected but as part of a cycle slows from time to time. temperates will be unaffected. http://docs.notur.no/uit/archive/HPCiA07/h...101207.ppt/view

the pensions bill is about 50 billion a year plus salaries on index linked government schemes so if we get deflation of 1% the government could save 1/2 a billion by reducing pensions. I'm not sure of my facts or figures but it seems a vote winner to me!

so if we get deflation do index linked pensions and salaries go down?